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Federal rate hike in December?


Will there be a Federal rate hike in December? I’ve been discussing the possibility of a federal funds rate hike for months now and I believe that time is very near. For all of you considering the purchase of a home or refinancing your existing mortgage, consider this to be your “shot across the bow” or “fair warning.” The Federal Open Market Committee (FOMC) members made a conscious decision in October to prepare markets for a potential December rate hike so long as economic data justifies the increase in borrowing costs. So, why is this important to home loan borrowers? While the “Fed” does not have the ability to directly set mortgage rates (lenders do that), it does create the monetary policies which indirectly affect these rates. When the Federal Reserve makes it more expensive for banks to borrow by targeting a higher federal funds rate, banks and … Continue reading

Posted By: Tom Mattix 1:44 PM Wednesday, November 18, 2015

San Diego Real Estate Update: Another Pacific Beach Property SOLD!


San Diego real estate update: six weeks ago, I received a call from a lady who lives in NYC who had found me via my website. This is unusual as 90+% of the folks who ask for my help are via referral! Yet, Anne wanted my help in finding a condo where she and her spouse, Dennis, could reap some nice income from vacation/weekly renting along the beach while at the same time, achieving some equity in a home to which they could some day retire. Just up my alley! Well, the following week, Anne and Dennis arrived and the 3rd unit I showed them was located at the See the Sea complex which is oceanfront, at the south end of Crystal Pier in Pacific Beach. See the Sea is a 76 unit building and well reputed and popular with vacation renters for several reasons: it is located … Continue reading

Posted By: Tom Mattix 4:08 PM Monday, November 16, 2015

San Diego Real Estate Update: Charming La Mesa Detached SOLD!


San Diego Real Estate Update: Charming La Mesa Detached SOLD! Just a short story about loyalty & friendship. A little over 12 years ago, I had the very fortunate experience of helping Mike & Jane sell their home in La Mesa. Since then, Mike and Jane have been kind enough to call upon me to help them with all of their real estate transactions, and would you believe it, I just helped them complete #6! The 6th one was a super charming investment/rental property @ 7468 Ohio Place in La Mesa, which after the last tenant vacated, Mike & Jane executed an extensive renovation. Picture, if you can, a “Father Knows Best” or “Leave it to Beaver” neighborhood… maybe not so easy for those of you under 50 years! Anyway, a really good family neighborhood!  This 3 BRM 1946 vintage classic has an open floor plan, abundance of … Continue reading

Posted By: Tom Mattix 2:56 PM Friday, October 30, 2015

Breaking News – Fed Decides To Leave Rates Unchanged!

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Breaking News – Fed Decides To Leave Rates Unchanged! Today, the Federal Reserve decided, in a highly anticipated vote, to keep interest rates at their current near-zero level, delaying for at least another six weeks a vigorously-debated decision on raising borrowing costs for the first time in nearly a decade. The policy-setting Federal Open Market Committee (FOMC), citing a weak month of job creation in September, said it “remains appropriate” to keep the short-term federal funds rate at 0%-0.25%, where it’s been since December 2008. The statement noted that the Fed members still hope to raise rates in 2015 and that means at the last meeting of the calendar year – Dec 15-16. Reasons for the delay today? Well,  overseas economies have shown weakness; a handful of domestic indicators have also softened, notably the September jobs report which revealed a paltry 142,000 new jobs were created last month; the … Continue reading

Posted By: Tom Mattix 2:52 PM Wednesday, October 28, 2015

Question: Rent vs Buy in San Diego?


Question: Rent vs Buy in San Diego? Trulia just released a study which found that in spite of rising sale prices, purchasing a home in the San Diego area can be a better financial decision vs renting. The study focus was based upon the perspective of whether a millennial (ages 25 to 35 years old) would be better served by purchasing or renting using the following entering criteria: The study used the latest San Diego average home rental of $2,325 and median home sales price of $488,959 Buyers have a 3.87% interest rate on a 30-year fixed-rate loan Put down 10% on their loan Itemize federal tax deductions Be in a 25% income tax bracket Factored into the calculations were home costs outside of a buyer’s mortgage such as maintenance, property taxes, upfront costs and insurance. After all the number crunching, the study concluded: The best places to … Continue reading

Posted By: Tom Mattix 3:13 PM Thursday, October 22, 2015

2016 California Housing Market Forecast

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2016 California Housing Market Forecast The California Association of Realtors just released their statewide housing forecast for 2016. For those of you planning to or thinking of a home purchase as the calendar turns to 2016, the following should be of definite interest to you: California’s housing market will continue to improve during 2016, but a shortage of homes on the market and a crimp in housing affordability will also carry forward from 2015. Existing home sales are predicted to increase by 6.3 percent next year from 2015. To provide a comparison, final sales in 2015 are projected to be up 6.3 percent from 2014. Solid job growth and favorable interest rates will be the driver of strong demand for housing in 2016 however, in regions where inventory is tight, such as the San Francisco Bay Area and San Diego, sales (completed escrows) growth could be limited by stiff … Continue reading

Posted By: Tom Mattix 12:46 PM Tuesday, October 20, 2015

San Diego Real Estate Update: A Charming San Carlos Detached SOLD!


San Diego real estate update: seven years ago, Gene & Rekha were referred to me via mutual friends and they allowed me to assist them in the purchase of a really nice one-story detached home in highly reputed San Carlos. Well, as chance would have it and as it so often happens, a job opportunity and offer in the Bay Area was too much of a draw to pass up. Yes, you guessed it. After I arranged for some light painting and a bit of landscaping work, we placed the home on the market and on Day 4 it was already in escrow and at full 100% list price!!! The home is simply charming with lots of character and a large rear yard.  With 3 BRMs, 2 BA, 1784 SF, hardwood floors, and a 2 car garage, this home is perfect for a young family and that is exactly … Continue reading

Posted By: Tom Mattix 5:17 PM Friday, October 16, 2015

San Diego Real Estate Update: Crown Point Beauty Sold!


San Diego real estate update: several years back, David found me on the internet and I helped him purchase a gorgeous single-family detached home in Point Loma. We’ve stayed in touch over the years and I have helped him research residential and commercial investment properties. Together, we just recently closed on a rental condo he’d owned for quite some time in the beautiful Crown Point area. Knowing that there was very little for sale (inventory low) and that Crown Point is an extremely popular area, I suggested a list price higher than market value to see if we could take advantage of the “hot” PB market. The result? One-day market time and a sale price at 100% of list… $384, 500. This top floor unit located at 1740 Roosevelt Ave is a 2 BRM, 2 BA, with 768 SF, space for a single vehicle, a bit of a view … Continue reading

Posted By: Tom Mattix 12:44 PM Wednesday, October 14, 2015

What’s The Latest on Mortgage Rates?

What’s the latest on mortgage rates? The news industry is all consumed with and economists are beating their drums about when the Federal Reserve is going to increase, for the first time in approximately 10 years, the Fed funds rate. Why, you ask? Well, because doing so has several implications which span the entire spectrum of American business and importantly for home purchasers, mortgage interest rates. During the last 3-4 months there has been much speculation regarding the timing of the Fed’s impending action and many economists predicted that rates would be adjusted following the last Fed meeting (officially termed the Federal Open Market Committee) held 2 weeks ago. Well, that didn’t happen because Fed members were not quite satisfied that the U.S. economy was on a strong enough footing to weather an increase which would have sent shock waves throughout the financial markets. Of course, economic reports coming … Continue reading

Posted By: Tom Mattix 2:09 PM Monday, October 12, 2015

San Diego Real Estate Update: Another Point Loma Property SOLD!


San Diego real estate update: several years back, Bill and Adele contacted me as they wanted to purchase a condo where their daughter could live while in school. Bill and I crossed paths quite a few years back while we were Navy pilots. We ended up in the same squadron then separated for a short time. While we didn’t know each other then, we’ve connected for reunions since. Anyway, their daughter was about to enter Pharmacy school out of state and it was time to sell the condo. Being a very popular and reputed location in Pt Loma, we had this nice 2 BRM corner town home under contract within 2 weeks and at full, 100% list price!  The unit also had a large private deck, a spacious master retreat, A/C, all triple pane windows, a one-of-a-kind in-unit laundry, and lots of storage. If you are familiar with the area … Continue reading

Posted By: Tom Mattix 12:12 PM Wednesday, October 7, 2015